Average farmland values in Iowa increased by over five percent to reach historic levels in 2013 according to the Iowa Land Value Survey conducted in November.

Farmland values increased for the fourth consecutive year with farm income motivating sales. A release from Iowa State University Extension says corn and soybean price movements are good indicators of gross farm income movement and both grains have fallen over the past year.

Iowa farmland value approaches $9k per acre in 2013Although farmland price increases started to slow after June as buyers became more concerned with lower grain prices, county averages were as high as $12,413 per acre. Scott County, the county with the highest average, saw values increase by 12.45 percent, averaging $1,374 per acre more this year than in 2012.

Michael Duffy, Iowa State economics professor and extension farm management economist who conducts the survey, keyed in on the slowing growth and inquires about the direction of the market in 2014.

“The key question is if this shows the market is going to settle, if it is just pausing before another takeoff in values, or if the market has peaked and due for a correction,” Duffy said.